Rumor: Pegatron cuts CDMA iPhone 4 production early

Rumors are going around that Pegatron was asked to scale back the production of CDMA iPhone 4 models not by a small margin, but by a rather dramatic one. At first, the Taiwan supplier was tasked with churning out around 10 million units (we reported 15 million), but was told in no uncertain terms to significantly reduce the orders by at least half – without any reasons given (so far, according to Digitimes’ sources).

Now this reduction could cause some consternation and confusion among users, since such a drastic cutback would contradict in part Verizon’s very own public expectations that was shared at its latest fiscal results call, where the mobile carrier intended to activate around 11 million iPhones for this year alone. So far, demand for the CDMA iPhone 4 has been amazing, selling a cool 2.2 million units over the winter never mind that they missed half the quarter, while launching it on a carrier that is more often than not associated with Android smartphones.

Perhaps this rumored reduction in production is less of a loss of interest compared to an earlier switchover so that Pegatron can produce the next generation iPhone instead. Of course, while some people say that the new model will not ship until September, but it could mean Pegatron is left high and dry, rolling out iPhone 4 models for a mere two quarters for the year before ramping up production for a replacement. What do you think of the whole shebang?